An investor purchases segregated funds for a total cost of $60,000. After 4 years, the segregated funds have increased in value to $100,000. If the investor redeems $30,000 from the segregated funds, what is the new value of the maturity guarantee? O $70,000 O $42,000 O $60,000 $30,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An investor purchases segregated funds for a total cost of $60,000. After 4 years,
the segregated funds have increased in value to $100,000. If the investor redeems
$30,000 from the segregated funds, what is the new value of the maturity
guarantee?
O $70,000
O $42,000
$60,000
$30,000
Question 3 (1nt,
According to the Rational Expectations Hypothesis:
O Given two securities with the same rate of return, the investor always chooses the one with the higher
degree of risk
Given two securities of different risk, a rational investor will always choose the one with the higher
expected return.
Given two securities of different risk, a rational investor will always choose the one with the lowest
expected return.
Given two securities with the same rate of return, the investor always chooses the one with the higher
standard deviation of returns.
Transcribed Image Text:An investor purchases segregated funds for a total cost of $60,000. After 4 years, the segregated funds have increased in value to $100,000. If the investor redeems $30,000 from the segregated funds, what is the new value of the maturity guarantee? O $70,000 O $42,000 $60,000 $30,000 Question 3 (1nt, According to the Rational Expectations Hypothesis: O Given two securities with the same rate of return, the investor always chooses the one with the higher degree of risk Given two securities of different risk, a rational investor will always choose the one with the higher expected return. Given two securities of different risk, a rational investor will always choose the one with the lowest expected return. Given two securities with the same rate of return, the investor always chooses the one with the higher standard deviation of returns.
13. Which of the following is true about the description of an Accredited investor of a Hedge Fund?
a.
b.
C.
d.
Minimal financial net worth of $2,000,000 and family income of $250,000
Minimum Financial Net Worth of S1,000,000 AND individual income of $200,000 or income of $300,000 for both
spouses
Minimum Financial Net Worth of $1,000,000 OR individual income of $200,000 or income of $300,000 for both
spouses
None of the above
Transcribed Image Text:13. Which of the following is true about the description of an Accredited investor of a Hedge Fund? a. b. C. d. Minimal financial net worth of $2,000,000 and family income of $250,000 Minimum Financial Net Worth of S1,000,000 AND individual income of $200,000 or income of $300,000 for both spouses Minimum Financial Net Worth of $1,000,000 OR individual income of $200,000 or income of $300,000 for both spouses None of the above
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